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Forex: USD/JPY breaking to fresh 4-week lows


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FXstreet.com (Barcelona) - USD/JPY is last at 78.71 bids, off recent fresh 1-month lows at 78.66, 2 pips lower of previous weekly lows from Monday. The pair is down by -0.48% since previous Asia-Pacific open yesterday, and -0.61% for the week. Next lower low can be found on June 15 at 78.61, just 3 pips below current levels as the pair keeps breaking lower.

 

Natural yen correlation has changed as of late, making a divergence with yen rising while risk appetite is on and equities are rising, Nikkei index higher by +0.94% at the moment, barely above the 8800 points, along with rest of local share markets. As Haruya Ida from IFR Markets says: “USD/JPY off a bit o/n on lower US yields and changed correlation to risk,” adding: “Risk not really off currently but certainly not on.”

 

Immediate support to the downside for USD/JPY shows at mentioned 15 June lows at 78.61, followed by May 31 lows at 78.21, and June 04 lows at 77.98. For the upside, nearest term resistance comes at Monday's lows 78.68, followed by yesterday's NY session/Tuesday’s lows at 78.78, and yesterday's London session lows at 79.94.

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